This sentence ending is a colloquial expression similar to the indirect speech forms -고 해(요) and -래(요).
- 부산에 산다고 안 그랬니?
=> Didn't you say you live in Pusan? - 저 건물 이름이 뭐니?
=> What's the name of that building? - 독립 기념관이라고 그래.
=> They say it's Independence Hall.
* -고 그래(요) is not to be confused with 그래(요), which has various meanings depending on the context, as shown in these examples:
- 요즘 방학이니?
=> Are you vacation now? - 그래.
=> Yeah. - 내일 모임에 나올래요?
=> Will you come to the meeting tomorrow? - 그래요.
=> Yes, I will. - 요즘 물건값이 너무 비싸요.
=> The prices are too expensive these days. - 그래요.
=> You are right./I agree.